• There will be more expressways constructed and opened in Henan province as China is completing its National Trunk Highway System (NTHS). The new expressways will compete with each other for traffic flow and toll revenues.
• Non-express highways offers less toll expense or toll-free as alternatives to toll-collecting expressways. However, the competitive disadvantages of most non-express highways are: lower speed, longer distance, and complex road conditions.
• Competitions also come from railways and air transportation, especially from railways due to the rising fuel cost. The railway transportation offers lower freight cost. But it lacks logistic flexibility and mobility. China is also expanding its railway network. With double-digit growth in automobiles and expansion of nationwide products and commodities distribution, the demand for expressway travel will far exceed the competition from railway network.
• There are over 10 expressway investment and development entities in Henan province.
• Two of them, Central China Expressway Co., Ltd (CCEC) and Henan Provincial Expressway Development Co., Ltd (HPEDC) are the largest, totaling over two third of the entire expressway investment in Henan province.
• CCEC is a public company traded on Shanghai stock exchange.Both CCEC and HPEDC are majorly owned by the state.
• Pinglin Expressway with future acquisition of Taiao Expressway will make CIIV the largest non-state owned expressway investment corporation in Henan province.